Floated at 120p on June 08 raising 33.6m to fund the development of a fertiliser factory, has used $5.9m for adquisitions September 08 and said it still had $26.9m left at 30 June 09.

The company has a phosphorous rock deposit in Kazakhstan totalling 800 million tonnes capable of producing fertilisers for the next 56 years.
The deposit lies in a flat lying position on the Kazakh steppes close to surface so will be cheap to mine and the world still needs fertilisers.
Positive points
1. Shallow - 1 to 3m depth. Ultra low cost to extract.
2. Close to Tengiz oil field which has high sulphur content, hence cheap source of sulphuric acid.
3. Located at junction of two main railway lines giving direct access to Russia/China.

Sunkar is suppose to be one of the lowest cost producers in the World at sub $125 per DAP (die-ammonium phosphate) tonne. The average is circa $200 with some producers as high as $300.
The case for phosphate deposits is population growth means more agriculture means more fertiliser needed in the future.
RESUME SKR produce phosphate for DAP fertilizer and have licenses and acrage in Kurdistan to last 50-70yrs producing in excess of 100M tonnes of raw material each year. 160m shares in issue, directors own a significant chunk. Also they have a cheap source of sulphur required to produce the DAP

Phosphorus - its role and nature
Phosphorus (chemical symbol P) is an element necessary for life. Because phosphorus is highly reactive, it does not naturally occur
as a free element, but is instead bound up in phosphates. Phosphates typically occur in inorganic rocks.
As farmers and gardeners know, phosphorus is one of the three major nutrients required for plant growth: nitrogen (N), phosphorus (P) and potassium (K).
Fertilizers are labelled for the amount of N-P-K they contain.
Most phosphorus is obtained from mining phosphate rock. Crude phosphate is now used in organic farming, whereas chemically treated forms such
as superphosphate, triple superphosphate, or ammonium phosphates are used in non-organic farming.
The current major use of phosphate is in fertilizers. Growing crops remove it and other nutrients from the soil... Most of the world's farms do not have or
do not receive adequate amounts of phosphate. Feeding the world's increasing population will accelerate the rate of depletion of phosphate reserves.
and...
resources are limited, and phosphate is being dissipated. Future generations ultimately will face problems in obtaining enough to exist.
It is sobering to note that phosphorus is often a limiting nutrient in natural ecosystems. That is, the supply of available phosphorus limits the
size of the population possible in those ecosystems.

13 May 09 conference - fertilizers link about SKR ....minesite

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I certainly cannot see why not.Consider also that they will have one of the lowest production cost around for phosphates.

.

Already trading well over 1 million shares with a lot of buying.

are we going to get the rns tomorrow .

i am looking at over 60p by friday.

Ranker 60p lets hope so?

Chessman yes its worth rememebering the hike at float,so i think it worth recapping on and this analyis's report is worth rereading and handy for those newer investors.
Taken from the other thread,


niceonecyril - 24 Apr 2009 11:29 - 13 of 262
Bought these at 9p a couple of weeks ago(missed7p while researching),its the
following article which made up my mind.

The sheer brutality of a bear market is writ large in the performance of Sunkar Resources which raised 36 million in June prior to listing on AIM. The price paid then was 120p per share: now the shares cost 24p. And nothing has changed. The company still has a phosphorous rock deposit in Kazakhstan totalling 800 million tonnes capable of producing fertilisers for the next 56 years. The deposit lies in a flat lying position on the Kazakh steppes close to surface so will be cheap to mine and the world still needs fertilisers. Even so investors have decided in a matter of weeks that the company is not worth 191.8 million, but 40 million which is only a fraction more than the money actually raised. That is the measure of this bear market at the moment, but Donald Sinclair, the Scottish finance director, is determined to maintain the companys presence in the market until the turn comes and sensible valuations return.
In this case it was the first interim results that were being discussed, but there was not a lot of real news over such a short time. The terms of the Sub Soil Use clause have been amended so that the Kazakh subsidiary is in full compliance, but you would have to have read the original terms to understand the changes. Apart from that, most of the mining equipment has been moved onto the site and stripping and ore extraction operations have started.operations. There is more machinery still to come and the tantalising thing is that the company could be very close to cash flow.

The bottom line is that this rock can be concentrated very cheaply to17% phosphorous which could be trucked as crushed rock direct to users in the vicinity to boost alkali in the soil, or to a suitable plant in Russia or Uzbekistan for upgrade. There are two problems with this. The first is transport costs and the second the low price of around US$20/tonne that will be received. Nonetheless there could be a profit in direct transportation perhaps as much as US$10/tonne depending on the distance the rock has to be transported. With such a huge deposit it makes sense to generate an initial cash flow from this operation while still moving ahead with the core plan which is to install a phosphoric acid plant.

The first essential step of this processs involves treating the rock with acid to produce phosphoric acid. Fortunately for Sunkar there is plenty of sulphur available from the Tengiz oil field in western Kazakhstan where Chevron is involved in a joint venture with Tengizneftegas so sulphuric acid will be no problem. Each barrel of oil being produced contains about 16% hydrogen sulphide, which the company says is equivalent to just over 19 kgs of recovered sulphur. In addition the gas fields nearby have excess ammonia from the cleaning of sour gas so Sunkar will be one of the few integrated producers of phorphorous based fertiliser in the world as all three main components are within reach. As part of the ongoing process ammonia is added to the phophoric acid to produce either mono-ammonium phosphate or die-ammonium phosphate which are the actual fertilisers.

A large-scale, low cost phosphate fertiliser manufacturing operation producing up to 1.76 million tonnes of d-ammonium phosphate per year is expected to cost around US$740 million. But when one considers that the current price of DAP, the worlds most widely used ammo phos fertiliser, easily adapted to all ranges of dry fertiliser application methods, is worth nearly US$1,000/tonne, the return should be swift. Add to this the advantages of having such a huge deposit near surface and close to transport and it can be seen that Sunkar Resources has a huge asset with immense potential which is simply not being valued sensibly in these difficult times. Even if the shambles of the US banking system is infecting the rest of the world crops will have to be grown and crops need fertilisers. This is the sort of stock Buffett and Bolton buy at times like this.

The central part of the deposit alone covers an area of 836 sq kms which is about one-tenth the size of County Durham. The overburden is only about 3 metres in thickness so can be stripped by scrapes and bulldozers. The processing plant would be at the epicentre of a highly agricultural region west of the town of Kandagash which is a freight hub on the North-South road, the Moscow-Tashkent rail link and the Orsk-Atytrau rail link. Transport is no problem so Sunkar can start generating modest cash flow quite quickly while it develops a strategic mining and business plan and carries out a bankable feasibility study on the processing plant. It just makes so much sense even if investors have shut off their brains for the moment.

The case for buying Phosphate deposits is similar to oil. There is even a Peak Phosphate debate to rival Peak Oils.

http://www.energybulletin.net/node/33164

The case for phosphate deposits is population growth means more agriculture means more fertiliser. Just as with low cost oil companies, cheap phosphate producers will emerge from downturn in a strong position as higher cost companies close down/investment curtailed.

Sunkars deposit is low grade but it has three advantages.

1. Shallow - 1 to 3m depth. Ultra low cost to extract.

2. Close to Tengiz oil field which has high sulphur content, hence cheap source of sulphuric acid.

3. Located at junction of two main railway lines giving direct access to Russia/China.

Hence Sunkar anticipated to be one of the lowest cost producers in the World at sub $125 per DAP (die-ammonium phosphate) tonne. The average is circa $200 with some producers as high as $300. (See page 113 of AIM Admission Document)
cyril

very good post so what is holding up the news.

Being optimistic is great,but one must also be realiatic.
Tanker,I suggest that you check out the SKR website,then you will know as much as the rest of us.

chess .thanks i have read all the news on skr .and yes it is good company .
I just think that the pim and other news should be out by now it is almost end of year.
and it would be a nice start to the new season

rns .today and more rns shortly. looking good .

SUNKAR RESOURCES PLC

("Sunkar" or the "Company")
CREDIT LINE FOR CHILISAI PHOSPHATE PROJECT APPROVED
Sunkar Resources plc (AIM:SKR) is pleased to announce that ATF Bank Kazakhstan ("ATF"), a member of the UniCredit Group, has approved a credit line (the "Loan") for the Chilisai Phosphate Project in Kazakhstan. The Loan envisages ATF providing up to $15 million in debt financing for a term of up to 3 years, subject to finalisation of necessary documentation that includes providing security over Group assets.
It is expected that the Loan will be released to the Company in tranches based on certain operational milestones. On signing of the Loan documentation, $ 5 million will be available for drawdown by the Company. A further $10 million will be available for drawdown on Sunkar achieving certain sales of direct application rock ("DAR") and securing off-take agreements forcertain levels of itsDAR.
The Loan proceeds will be used to finance fixed assets and working capital for Temir-Service LLP, the 100% owned subsidiary of Sunkar, holding the subsoil use rights forthe Chilisai phosphate deposit in Kazakhstan and will not be available for meeting directly incurred expenses of the Company outside of Kazakhstan.
On 30 June 2010, the Company announced it had secured a three year Equity Line Facility ("ELF") of up to 10 million. Having secured the Loan finance for its Kazakhstan operations, the Company intends to draw upon the ELF to fund UK expenses. The Company currently has sufficient cash in hand to provide working capital until mid February 2011. As detailed in the 30 June announcement, the subscriptions will be priced at a 6 per cent. discount to the market price. Whilst any drawdown under the ELF is subject to liquidity and therefore there can be no guarantee that the whole amount can be drawn down, the directors believe this will be less dilutive to shareholders than alternative equity issuance at this time.
Subject to completion of documentation for the Loan and full drawdown of the Loan and ELF taking place, at the current rate of development, this will provide sufficient working capital until the mid-2012. In addition to the credit line from ATF and the ELF, the Company is investigating other funding options which include strategic equity finance prior to obtaining the project finance for the Chilisai project.
A further update on Kazakhstan operations is being prepared and will be released shortly.
Nurdin Damitov, Director of Corporate Affairs of Sunkar, commented:
"The credit line is the first debt financing secured by the Group and signifies a new stage in the further development of the Chilisai Phosphate Project. This financing ensures availability of funds to meet obligations under the Subsoil Use Contract and to provide additional working capital for increased DAR sales. The funding gives further flexibility for management to continue working towards the launching of the DAP/MAP Project which, combined with current negotiations with potential strategic partners through UniCredit Securities and in close cooperation with UniCredit AG on the project finance, demonstrates the impetus the project is gaining.
Additionally, this financing from a local Kazakh bank underlines the high level of support Sunkar's project is attaining within Kazakhstan, where its potential regional significance is very much appreciated."
For further information please contact:

Sunkar Resources plc
Sunkar Resources plc, through a wholly owned subsidiary Temir Service LLP, operates a phosphate rock mine in Aktobe Oblast, North West Kazakhstan. Temir Service LLP holds a Subsoil Use Contract to part of the Chilisai Phosphate Rock Deposit. The contract area is estimated to contain 800 Mt of phosphate ore.
Sunkar's strategy is to build a world class integrated ammoniated phosphate fertilizer plant with low operating costs. Sunkar's low cost base derives from its near surface phosphate rock deposit, access to sulphur from the nearby North Caspian oil and gas fields and regional long-term marginal priced gas.
The Chilisai Phosphate Rock Deposit is ideally located on a transportation hub that spans the agricultural markets from Western Europe through to China.
ATF Bank

ATF Bank is a subsidiary of UniCredit Group in Kazakhstan with the largest network among foreign banks, employing 4000 people. It offers a full range of banking products, strongly investing in product innovation and sophistication on the corporate sector and facilitating investment of local, foreign and cross border clients.
UniCredit Group

UniCredit Group, the strongest banking group in CEE, is represented in over 50 countries worldwide, with a core presence in Italy, Germany and Austria and Emerging Europe. With a network of over 10,000 branches and offices worldwide the first truly European bank serves more than 40 million customers.
This information is provided by RNS
The company news service from the London Stock Exchange

END

And from the abovejust a little longe?.
cyril,

A further update on Kazakhstan operations is being prepared and will be released shortly.

what does shortly mean in time ?

What I feel is particularly positive about this deal,is the commitment shown by the Kazakh government to this project.
We have a long time winner here IMO.

chess that is spot on . but would like the other news like this week

down over 7% bfs will be out by xmas .

What's a bf (bullfighter maybe??)

See 6th para. of today`s RNS - suspect will be included in `further update`....`will be released shortly`.

More pieces of puzzle/reasons to hold shortly....

this

RNS today???? Not on my screen. Link please.

It must be written in invisible ink!